Builders risk, arranged before the excavator arrives.
Cover for the project itself while it is being built, the structure, the materials on site, and the money already sunk into it.
Build the project file Start a project policy See what’s coveredProject on the calendar? Build the project file: the value, the schedule, the site, one question at a time. Build the file →
Bidding work that needs a bond? Build the bond file too. Build the file →
The project while it is being built, structure, materials, soft costs
Owners, developers and general contractors on any build or major renovation
The contract clause, completed value, start date and realistic finish
What is builders risk insurance?
It insures a building while it is under construction. If fire, storm, theft or vandalism damages the partly finished structure or the materials waiting on site, builders risk pays to put it back. It runs for the length of the project rather than a year, and it usually ends when the building is complete or occupied, which is the moment a different policy has to take over.
If the policy expires before the project finishes, cover stops while the building is still half-built, and an extension asked for late is not always granted on the same terms. The exposed work, the materials on site and the money already sunk into it become yours. The Province’s standard construction contract requires cover on “all property, of every description, to be used in the construction of the Work” against all risks of loss or damage, in force from the day work starts. That is a builders risk policy described in contract language. Read the Province’s CCDC 2 insurance terms (opens in a new tab).
It is also called course of construction insurance. Lenders and owners normally require it. A construction mortgage can make proof of cover a condition of releasing funds, and a CCDC 2 contract requires the property insurance to be in place from the day the work starts.
The project, and the money in it.
The structure under construction
Work in place, from foundation to finish, against fire, storm, water, theft and vandalism.
Materials on site
Lumber, fixtures, windows and equipment waiting to be installed, a common theft target.
Materials in transit and in storage
Goods on the way to site or held off-site, which many policies limit unless it is arranged.
Soft costs
Extra interest, extended permits, additional consultant fees and lost rent when a loss delays completion.
Renovations and conversions
Work on an existing building, where the interaction with the owner’s policy needs care.
Liability during construction
Usually a separate but connected policy, injury or damage the work causes to others.
Wood-frame construction is rated, not excluded. Multi-storey wood frame is a case-by-case decision that depends on the project, so we will give you a straight answer on yours rather than a general policy.
Builders risk is the same product everywhere.
So why does the broker matter?
We will not pretend our builders risk wording is uniquely better than anyone else’s. It is a well-established product and we use the same regular and specialist markets other brokers use. Anyone claiming a secret advantage here is selling you something.
What actually differs is timing and accuracy. Whether the policy is in place before the first trade arrives. Whether the term matches your real schedule instead of an optimistic one. Whether soft costs are included when your lender’s agreement requires them. Whether the named insureds match the ownership structure. Whether the certificate says what the owner’s contract demands.
On a live project, that is the part that costs or saves you money, and it is where we compete.
Three ways builders risk policies go wrong.
These are the problems that turn up on projects arriving from elsewhere. Each one is simple to prevent and expensive to discover.
The term is too short
Projects overrun. If the policy expires before completion, cover has to be extended, and an extension asked for late is not always granted on the same terms.
The value is the contract price
Sums insured should reflect the completed value including materials and soft costs, not simply the number on the contract.
Nobody planned the handover
Builders risk ends at completion or occupancy. If the permanent policy is not ready, there is a gap on a finished building.
How this can play out.
A framing fire on a half-built house takes out three weeks of work and the lumber stacked beside it. Builders risk pays to rebuild the work in place and replace the materials. The general liability policy does not, because nobody else was harmed.
Starting a project policy.
The project
Address, what is being built, and whether it is new construction or work on an existing building.
The numbers
Completed value, and the construction schedule, start date and realistic completion.
The paperwork
The insurance clause from the contract, plus any lender requirements. Send the actual wording.
Who must be named
Owner, general contractor, lender, consultants, anyone the contract requires on the policy.
What a builders risk policy expects on site.
Builders risk covers the project while it exists half-finished, which is exactly why its conditions live on the site itself. Four that decide real claims.
A start date that came too late
Cover should begin before materials hit the site, not after framing. Losses in the gap between mobilization and the policy start belong to nobody.
Work stopped for too long
Most wordings restrict cover when construction pauses beyond a set stretch. A stalled permit or a financing gap is exactly when the site is most exposed, and when the policy narrows.
Security the site never had
Fencing, lockup and lighting named in the wording are conditions, not suggestions. After a theft, the first question is whether the site matched the description.
Occupancy before the handshake
Moving a tenant or an owner in before the policy converts to a property policy is a quiet way to have neither policy respond. The changeover date is a real date.
A builders risk claim is decided by site habits set in week one. It is worth checking the wording against how the site will actually run.
What builders and owners ask us.
Is builders risk the same as course of construction insurance?
Yes. They are two names for the same kind of policy, and you will see both in British Columbia. Contracts and lenders often say course of construction, while insurers often say builders risk. If your contract uses one name and your quote uses the other, that on its own is not a problem. Send us the contract and we will check the wording actually matches what it asks for.
Who buys builders risk, the owner or the contractor?
Either, and the contract usually says which. What matters more is that everyone with a financial interest is properly named, because an uninsured party discovering it after a fire is a dispute nobody needs.
When does builders risk end?
Typically at completion, occupancy, or the policy expiry date, whichever comes first. That last part catches people out on projects that run long, so tell us early if your schedule slips.
Are soft costs covered?
Only if arranged. Extra loan interest, extended permits and consultant fees during a delay can exceed the physical damage on a financed project, and lenders increasingly ask for them.
Is theft from site covered?
Usually yes, and it is the kind of claim that comes up on a build, particularly appliances, fixtures and copper. Site security measures can affect both the terms and the price.
Does builders risk cover faulty workmanship?
Generally not the defective work itself, though resulting damage may be covered depending on wording. This is a genuinely important distinction and worth asking us about on your specific project.
I am renovating a building I already own. What do I need?
Tell us before work starts. Renovation changes the risk and your existing property policy may restrict or exclude cover during construction. Getting this sequence right is easy to miss and worth checking.
My site is not in the Lower Mainland. Can you still insure it?
Yes. We are licensed to arrange insurance anywhere in British Columbia, so a build in Kamloops, Prince George or Nanaimo is inside our licence, not just one in the Lower Mainland. Where the site sits does change what an insurer wants to know, things like the distance to the fire hall and to the nearest hydrant. Tell us the address and we will work from there.
Not the question you had? Build the project file and set out your own situation in plain words. A licensed broker reads it and replies in writing.
What people usually look at next.
Excavating on site? pollution cover covers what a liability policy excludes.
Tell us about the project.
What is being built, what it will be worth, and when you break ground.
BREAKING GROUND SOON? SAY SO. WE TREAT IT AS THE DEADLINE IT IS
Public or larger private projects usually require bonding too. surety bonds.
Larger projects usually demand $5 million or $10 million in total. umbrella & excess liability.
Quoting more than one project this year? Build the contractors file once and the desk prices from a complete picture. Build it here →